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Egypt Inks Deal to Further Accelerate Supply of Green Fuels

A general view of Cairo, Egypt. (AFP)
A general view of Cairo, Egypt. (AFP)
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Egypt Inks Deal to Further Accelerate Supply of Green Fuels

A general view of Cairo, Egypt. (AFP)
A general view of Cairo, Egypt. (AFP)

Egypt signed on Monday a Memorandum of Understanding (MoU) with Maersk in a joint bid to further accelerate the supply of green fuels for ships as part of the shipping industry’s transition to net-zero.

Egyptian Prime Minister Mostafa Madbouly witnessed the signing of the deal with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), the Sovereign Fund of Egypt for Investment and Development (TSFE), and Maersk.

The agreement will see the establishment of a project to produce green fuels for ship bunkering supplies and to achieve zero carbon emissions.

The signing was attended by Egypt's Electricity Minister Mohamed Shaker and Morten Bo Christiansen, Head of Decarbonization at Maersk.

The MoU is in line with the government's commitment to green projects, especially since Egypt will host the 27th session of the Conference of the Parties (COP 27) to the UNFCCC .

Madbouly stressed that Egypt, under the leadership of President Abdel Fattah al-Sisi, continues to strive to expand in the field of clean energy and its uses.

This is evident through providing the necessary support in this field, while placing green fuel projects on its list of priorities, and pushing for the implementation of these projects as pillars of the state’s strategy towards the localization of the green fuel industry.

“Capitalizing on Egypt’s fundamentals and vision, SCZone’s strategic integrated areas of ports and industrial parks around the Suez Canal and leveraging on the solid and enduring longstanding relationship we have with Maersk, I am looking forward to the evolvement of this project, which meets our mutual target of transforming into the green economy,” said Eng. Yahia Zaki, Chairman of the SCZone.

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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.